Sealed Air Corporation (NYSE:SEE), despite grappling with recent market challenges that led to a 33% decrease in its stock price, has announced it will uphold its industry standard dividend yield of 2.6%, amounting to $0.20, which is due on December 15th. The company's dividends are well-supported by earnings, with a high payout ratio that sees over 75% of free cash flow returned to shareholders.
This approach, however, could potentially limit Sealed Air's ability for future expansion. Looking ahead, the company forecasts a substantial EPS growth of 52.5% in the next year. If dividends persist in alignment with recent trends, the expected payout ratio will be a sustainable 21%.
The annual dividend has been on a steady yet slow upward trajectory, rising from $0.52 in 2013 to $0.80, indicating a compound annual growth rate (CAGR) of approximately 4.4%. Despite current market challenges and the high payout ratio, Sealed Air's impressive record of 21% annual EPS growth over the past five years suggests the potential for it to continue as a strong dividend stock.
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